i think you are not deep enough in the traffic biz to understand that you can not generally talk about CPMs.
prices for traffic depend on so many things that you can speak in the best case of an overall CPM. $12 for the free views can not be an average but some part of the traffic can produce that.
i will give you an example:
let´s say a user from china with a mobile phone enters PH on the frontpage and klicks on a video he will already execute the pop on the front page.
also this user does not have a big value as it is not easy to monetize him.
now let´s say a user from switzerland with an IOS phone, mobile connection and carrier swisscom would enter a videopage directly - $12 US CPM would be not a very high price.
you forgot that there is not only one ad on this page and if you calculate 1 pop and 5 ads you have already 6 different advertisers that pay this $12 TOGETHER.
alone the pop to such a user would be around 5-8 dollars CPM.
about the $45 CPM in the paid area I made already a calculation - but also this calculation is based on the users GEO, the device, the OS and probably the carrier and/or browser.
sure it sounds better when a producer can say he sold 10 videos for 50 dollar to 10 customers. but on the long term it is not a biz as this 10 customers can not pay more than this 50 dollar per licence and it will be a one time payment.
imagine - if PH have 1 million videos online that get their share as long as they are online we are talking about millions and millions of revenue for thousands of right holders over the time.
away from that MOST of the amateur content on PH is second monetisation - and this is also in the interest of mindgeek, which as the operator of the big amateur portals also initially going the high-priced marketing way. most of these videos have already made several thousand dollars in the amateur portals but have already exceeded their life cycle there. on the long term they make now another few thousand as content that is monetized through advertising.
so the final profit of each production is FAR more than in the good old times.
the demand on paid videos is very limited - the demand on advertising is higher than the supply - so it's always the more lucrative and flexible way in a marketing chain.
prices for traffic depend on so many things that you can speak in the best case of an overall CPM. $12 for the free views can not be an average but some part of the traffic can produce that.
i will give you an example:
let´s say a user from china with a mobile phone enters PH on the frontpage and klicks on a video he will already execute the pop on the front page.
also this user does not have a big value as it is not easy to monetize him.
now let´s say a user from switzerland with an IOS phone, mobile connection and carrier swisscom would enter a videopage directly - $12 US CPM would be not a very high price.
you forgot that there is not only one ad on this page and if you calculate 1 pop and 5 ads you have already 6 different advertisers that pay this $12 TOGETHER.
alone the pop to such a user would be around 5-8 dollars CPM.
about the $45 CPM in the paid area I made already a calculation - but also this calculation is based on the users GEO, the device, the OS and probably the carrier and/or browser.
sure it sounds better when a producer can say he sold 10 videos for 50 dollar to 10 customers. but on the long term it is not a biz as this 10 customers can not pay more than this 50 dollar per licence and it will be a one time payment.
imagine - if PH have 1 million videos online that get their share as long as they are online we are talking about millions and millions of revenue for thousands of right holders over the time.
away from that MOST of the amateur content on PH is second monetisation - and this is also in the interest of mindgeek, which as the operator of the big amateur portals also initially going the high-priced marketing way. most of these videos have already made several thousand dollars in the amateur portals but have already exceeded their life cycle there. on the long term they make now another few thousand as content that is monetized through advertising.
so the final profit of each production is FAR more than in the good old times.
the demand on paid videos is very limited - the demand on advertising is higher than the supply - so it's always the more lucrative and flexible way in a marketing chain.
Beside, he start interesting topics, not everyone can be super smart in terms of discussion.
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